Tracy McGrady scored 32 points as the Rockets soared to an easy 90-69 win over the short-handed Dallas Mavericks.
Tim Duncan hit a 19-foot jumper just before time expired to give the San Antonio Spurs a dramatic 94-92 win over the Cavaliers.
The South Americans beat Italy 84-69 to win the Olympic men's basketball title for the first time.
Jalen Rose scored 26 points as the Toronto Raptors upset the Los Angeles Lakers 108-102.
The Americans remain in the competition but the setback -- only their third loss in 112 Olympic matches spanning 72 years -- is a huge embarrassment.
An Olympic historian disagrees with a widely held consensus that American swimmer Michael Phelps is the greatest ever Olympian.
A summary of sports events and sports persons, who made news on Tuesday
Sim Bhullar has become the first player of Indian descent to play in the high-profile National Basketball Association (NBA) league after making his debut for Sacramento Kings.
The 36-year-old Jhajharia, who is the first Indian to win two Paralympic gold medals, was the first choice of the awards selection committee.
Swimmer Michael Klim was among 35 Australian Olympic athletes who posed nude for a calendar released on Tuesday.
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